Get college assignment help at uniessay writers Investment in capital equipment (in € thousand) n Useful life of the equipment (in years) 2.300 5 Residual value of the equipment at the end of year 5 (in thousand) Investment in raw, auxiliary and operating materials (in thousand) Estimated sales volume in year 1 (in € thousand) Estimated sales volume in years 2 to 5 (in thousand) Sales price per unit (E/unit) Variable costs per unit (E/unit) Fixed costs excluding depreciation (in € thousand) Depreciation, linear over useful life (in € thousand) Required rate of return (% p.a.) Tax rate (%) 300 300 500 600 8,00 5,00 800 400 12% 40%
UVO -8- Exhibit AURORA TEXTILE COMPANY Consolidated Income Statement for the Fiscal Years Ended December 30, 1999-2002 (dollars in thousands) 2000 2001 1999 2002 Pounds shipped (000s) 151,893 187,673 190,473 144,116 Average selling price/lb. 1.3103 1.2064 12045 1.0235 Conversion cost/lb Average raw-material cost/lb 0.4447 0.442 0.4465 0.4296 0.7077 0.6429 0.6487 0.4509 $245,908 $229,787 Net sales $182,955 $147,503 Raw-material cost 132,812 64,982 122,461 98,536 Cost of conversion 83,454 84,212 67,822 61.912 Gross margin 29,641 16,597 23,114 20,609 SG
WORKSHOP WEEK 10 Team name: 1) Suppose that put options on respectively. How can the options be used to create (a) a bull spread and (b) a bear spread? Construct a table that shows the profit and payoff for both spreads. stock with strike prices $30 and $35 cost $4 and $7, A bull spread is created by buying the $30 put and selling the $35 put. This strategy gives rise to an initial cash inflow of $3. The outcome is as follows: Stock Price Payoff Profit 0 S, 235 3 30 S<35 S-35 S-32 -5 S< 30 -2 A bear spread is created by selling the $30 put and buying the $35 put. This strategy costs $3 initially. The outcome is as follows I Profit Payoff Stock Price -3 0 S, 235 32-ST 35-ST 30 S,<35 2 5 S<30
Question 3 (1 point) Given the following, what is the Net New Borrowing for 2018? Balance Sheet 2018 2017 1,600 1,700 Cash Accounts 17,400 23,700 81,600 14,300 22,500 82,900 $121,400 $124,300 2017 Receivable Inventory Net Fixed Assets Total Assets 2018 12,900 48,600 22,000 40,800 Accounts Payable Long-Term Debt Common Stock Retained Earnings Total Liabilities
This Question: 1 pt 17 of 17 Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same dlosing costs You need a $120,000 loan. Option 1: a 30-year loan at an APR of 8,5% . Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? Click to select your answer(s). Save for Later Lip NOW a
A B E Statement of Cash Flows |(Amounts in millions) Fiscal Year Ended January 31, Cash flows from operating activities: 9 2015 2014 2013 2012 Consolidated net income 10 (Income) Loss from discontinued operations, net of tax 11 $17,099 (285) $16,695 (144) $17,756 (52) $16,387 21 12 Income from continuing operations 13 16,814 16,551 17,704 16,408 14 Adjustments to reconcile income from continuing operations to net cash provided by operating activities 15 Depreciation and amortization 16 Deferred income taxes 17 Other operating activities 18 9,173 8,870 8,478 8,106 1,050 468 (503) 785 (279) 938 (133) 602 19 Changes in certain assets and liabilities, net of effects of acquisitions: 20 Increase in accounts receivable 21 Increase in inventories 22 Increase in accounts payable 23 (569) (1,229) 2,678 1,249 (566) (1,667) (614) (2,759) 1,061 (796) (3,727) 2,687 531 Increase in accrued liabilities 24 (Decrease) Increase in accrued income taxes 25 103 271 30 166 (1,224) 981 29 26 Net cash provided by operating activities 27 28 Cash flows from investing activities: 29 Payments for property and equipment 30 Proceeds from disposal of property and equipment 31 Proceeds from disposal of certain operations 32 Other investing activities 33 34 Net cash used in investing activities 35 28,564 23,257 25,591 24,255 (12,898) 532 (12,174) 570 (13,115) 727 (13,510) 580 671 0 0 (3,679) (192) (138) (271) (12,637) (11,125) (12,526) (16,609) 36 Cash flows from financing activities: 37 Net change in short-term borrowings 38 Proceeds from issuance of long-term debt 39 Payment of long-term debt 40 Dividends paid 41 Purchase of Company stock 42 Dividends paid to noncontrolling interest 43 Purchase of noncontrolling interest 44 Other financing activities 45 (6,288) 5,174 911 2,754 3,019 5,050 (4,584) (5,048) (6,298) (526) 7,072 (4,968) (6,139) (6,683) (426) (296) (260) 211 (3,904) (6,185) (1,015) (600) (1,844) (409) (1,478) (5,361) (7,600) (282) (132) (58) (71) 46 Net cash used in financing activities 47 (15,071) (10,789) (11,946) (8,458) 48 Effect of exchange rates on cash 49 (514) (442) 223 (33) 50 Net (decrease) increase in cash and cash equivalents 51 Cash and cash equivalents at beginning of year 52 1,854 7,281 (500) 7,781 1,231 6,550 (845) 7,395 53 Cash and cash equivalents at end of year 54 $6,550 $9,135 $7.281 $7,781 IS RS SCE M456
Cerra Co. expects to receive 5 million euros tomorrow as a result of selling goods to the Netherlands. Cerra estimates the standard deviation of daily percentage changes of the euro to be 1 percent over the last 100 days. Assume that these percentage changes are normally distributed. Use the value-at-risk (VaR) method based on a 95 percent confidence level. What is the maximum one-day loss in dollars if the expected percentage change of the euro tomorrow is o.5 percent? The current spot rate of the euro (before considering the maximum one-day loss) is $1.01. a. -$25,250 b.-$111,100 c. -$75,750 d. -$57,500
EXERCISE 1 Two companies can borrow in the FX markets on the following terms: Company A Company B Fixed USD Treasuries 60 Treasuries 180 Floating GBP LIBOR 15 LIBOR 160 The spot rate is GBP/USD 1,50. The two companies engage in a two year swap on a notional principal of 100 mln GBP using the services of a swap bank. Company A takes 60% of the arbitrage gain, Company B 24% and the swap bank – 16%. Show how the swap works and calculate the payments made by the two companies if the yields on Treasuries is 7% and LIBOR is 5% in year 1 and 5,5% in year 2
Exerc In July 2008, fearing further appreciation of the zloty, you bought a 3-month put option for 100,000 USD at 2 PLN/USD, paying premium 10 groszys for 1 USD. To cover the significant costs of this option, you wrote 3 month USD call options at 2 PLN/USD receiving premium 2 groszys for 1 USD. Draw your profit/loss profile What will be your profit/loss if the exchange rate in 3 months is 4 PLN/USD
Digital Corp. exports calculators to Peru. Currently, it sells 1 million units a year for the local equivalent of USD 40 (currency in Peru: sol (PES)) Currently, the exchange rate is PES 2,56/USD, but devaluation to PES 3.20/ USD is expected. Assuming that the devaluation will occur, Digital Corporation faces the following dilemma: 1./Maintain the current price in sals, hoping that the sale will not change. 2./ Keep the current price in dollars, counting with a drop in sales by 78% 3./ Mix both strategies by increasing the price in sols to 115 PES, accepting a 50% drop in sales. Direct costs represent 75% of the initial price in USD (calculators are produced in the USA). What strategy will you recommend?
Get college assignment help at uniessay writers Assume that Company A agreed to pay 6 month LIBOR and to receive fixed interest rate 8% per annum (with interest payable every six months) from nominal value of 100 mln USD. The Swap contract is for 1,5 year. Fixed interest rates are 6, 12 and 18 months are: 10%, 12 % and 14%. The 6 month LIBOR is currently 11 %. Calculate the value of this swap for Company A.
Following are financial statement numbers and select ratios for Berry Limited as at, and for the year ended 31 March 2018 (dollars in 000’s) 2018 Total sales 90,000 2018 Residual operating income (ROPI) 2018 Net interest expense after tax 2017 Net operating assets (NOA) 2018 Net operating assets (NOA) Sales growth, 2019 through to 2022 Net operating profit margin (NOPM) 2018 Return on equity (ROE), based on ending balance of owner’s equity Terminal growth rate Corporate tax rate 2,500 2,450 $ 32,000 $ 35,000 10% 8% 19% 3% 28% In addition, it is expected that the company’s net operating asset turnover (NOAT) based on the ending balance of NOA and its cost of capital will stay constant over all future periods REQUIRED: (a) Given the horizon period from 2019 to 2022, with the terminal year 2023, determine the residual operating income (ROPI) in 2019, 2020, 2021, and 2022 AND the cumulative present value of horizon period ROPI as at 31 March 2018. (7 marks) Calculate the present value of the terminal value of ROPI as at 31 March 2018 (b) (2 marks) Based on your answers to parts (a) and (b) of this question, estimate Berry Limited’s (e) equity value per share as at 31 March 2018. The company has 10 million shares outstanding. Round to two (2) decimal places (3 marks) One critique of the ROPI model is that it focuses managers attention solely on short- (d) term operating assets and neglects investment in long-term operating assets. Briefly comment on the above statement. (3 marks)
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Following are financial statement numbers and select ratios for Apricot Limited as at, and for the year ended 31 March 2018 (dollars in ‘000s) 2018 Total sales $105,268 2018 Net operating assets (NOA) Sales growth, 2019 through 2022 Net operating profit margin (NOPM), 2019 onwards Net operating asset turnover (NOAT, using the ending balance of NOA), 2019 onwards 2023 Terminal growth rate Weighted average cost of capital $38,954 5.5% 10% 2.7 2% 12% REQUIRED: (a) Given the horizon period from 2019 to 2022, with the terminal year 2023, determine the residual operating income (ROPI) in 2019, 2020, 2021, and 2022 AND the cumulative present value of horizon period ROPI as at 31 March 2018. (5 marks) (b) Calculate the present value of the terminal value of ROPI as at 31 March 2018. (2 marks) Based on your answers to part (a) and (b), estimate Apricot Limited’s equity value per share as at 31 March 2018. Note that the book value of Apricot Limited’s net non- operating obligations (NNO) as at 31 March 2018 is $15 million. The market value of the company’s NNO as at 31 March 2018 is estimated to be less than its book value by $20 million, due to the appreciation in the market value of its non-operating assets. The company has 12.5 million shares outstanding (c) (3 marks) Is the estimated equity value per share of a company using the residual operating income (d) (ROPI) model affected by the differences in the accrual accounting policies adopted by the company? Explain (3 marks)
f cash flows shown in the following table, Present value-Mixed streams Consider the mixed streams a. Find the present value of each stream using a 8% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $60,000 in each case. Is there some discount rate at which the present values of the two streams would be equal? i Data Table (Click on the icon located on the top-right copy its contents into a spreadsheet.) corner of the data table below in order to Cash flow stream Year A B $-45,000 $37,500 $30,000 $22,500 $15,000 $15,000 $22,500 $30,000 $37,500 -45,000 0 1 2 3 4 Totals $60,000 $60,000 Print Done
5. (4 pts)( cfin,5-4) Wilma just sold all the shares of international inns stock that she owned for $156 per share. She purchased the stock one year ago for $150 per share. If Wilma did not receive any dividend payments during the year, what yield did she earn on her investment? Dollar income Capital gains Dollar return Yield = Beginning value Beginning value Dollar income (Ending value – Beginning value) Beginning value Useful formula 6. (4 pts) (cfin,6-1) Swift Bicycle plans Each convertible bond has a face value equal to issue convertible bonds to finance its future growth to $1000 and can be converted into 25 share of common stock. What is the minimum stock price that would make it beneficial for bondholders to convert their bonds?
An investor is provided with the following information on London Stock Exchange: American put and call options on a share of a company listed on the Call price (co) 33p Put price (Po) 49p Exercise price (X) = 480p Today: 11 June 2019 Expiry date: 20 December 2019 Current stock price (So) 458p Risk-free interest rate (r) 2.4% The company pays no dividends.
Helena Laboratorie Google Scholar Food As Medicine . Siemens Training w Question Completion Status QUESTION 3 Before any month-end adjustments are made, the net income of Lawrence Company is $550,000. However, the following adjustments are necessary office supplies used, $35,000; services performed for clients but not yet recorded or collected, $12,300; interest accrued on note payable to bank, $14,100. After adjusting entries are made for the items listed above, Lawrence Company’s net income would be 10 points S An $541,400 5488,600 $583,200 $513,200 Save 10 points QUESTION 4 one results in an increase in liabilities and the recognition of an expense at the end of an accounting Of the following adjusting entries, which period? The entry to accrue salaries owed to employees at the end of the period The entry to record revenue earned but not yet collected or recorded The eutry to record earned portion of rent previously received in advance from a tenant The entry to write off a portion of unexpired insurance Cick Sape and Submit to save and submit. Click Save All Anscers to se all anoers DELL
SET LO2 Exercises EGN 3203 engineering economics 22, Construct a cash fl ow diagram that represents the amount of money that will be accumulated in 15 years from an investment of $40,000 now at an interest rate of 8% per year. F ? i 8% 0 1 2 4 15 Year 40,000 12/13 EGN 3203 engineering economics LO2 Exercises 20. Construct a cash fl ow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years I through 5 at an interest rate of 10% per year, and an unknown future amount in year 5. F ? i- 10% 9000 9000 9000 9000 9000 1 4 5 Year 25,000 21. Construct a cash fl ow diagram to fi nd the present worth in year 0 at an interest rate of 15% per year for the following situation. Year Cash Flow, $ -19,000 8,100 1-4 P ? i= 15% 8100 8100 8100 8100 1 2 Year 19,000 11/13 LO2 Exercises EGN 3203 engineering economics 19. For a company that uses a year as its interest period, determine the net cash flow that will be recorded at the end of the year from the cash flows shown: Disbursements, $1000 Receipts, $1000 Month 300 500 800 200 120 GOO Jan Feb S00 400 Mar 400 Apr May June July Aug Sept S00 G00 900 300 800 300 700 900 S00 400 500 Oct 400 400 Nov 700 1800 Dec Net CF. $1000 200 Month Receipts, S1000 Jan Dishursemenrs, $1000 300 500 3000 500 Feb 800 -200 400 Mar 200 – 280 120 400 Apr 100 500 May 600 300 June 900 600 July 800 500 300 Aug Sept 700 400 300 900 400 500 /00 Oct 500 400 Nov 400 400 Dec 1800 700 /100 low $2.920 Net Cash ($2,920,000) 10/13 LO2 Exercises EGN 3203 engineering economics Cash Flows 17. Identify the following as cash inflows or outflows to commercial air carriers: fuel cost, pension plan contributions, fares, maintenance, freight revenue, cargo revenue, extra- bag charges, water and sodas, advertising, landing fees, seat preference fees. fuel cost: outflow; pension plan contributions: outflow; inflow; outflow; inflow: inflow: Inflow: outflow; outflow: outflow; inflow. passenger fares: maintenance: freight revenue: cargo revenue: extra bag charges: water and sodas: advertising: landing fees: seat preference fees: 18. Many credit unions use semiannual interest periods to pay interest on customer savings accounts. For a credit union that uses June 30 and December 31 as its semiannual interest periods, determine the end of- period amounts that will be recorded for the deposits shown in the table Month Deposit, $ Jan 50 70 Feb Mar Apr May 120 20 June July 150 00 Aug Sept Oct Nov 40 110 Dec $260 $390 9/13 I LO2 Exercises EGN 3203 engineering economics If the interest rate on the bonds was 9% per year, how much does the company have to pay the bond holders? The face value (principal) of the bonds is $6,000,000. $7,770,174 15. A solid waste disposal company borrowed money at 10% per year interest to purchase new haulers and other equipment needed at the company owned landfill site. If the company got the loan 2 years ago and paid it off with a single payment of $4,600,000, what was the principal amount P of the loan? P $3,801,653 16. If interest is compounded accumulate to $86,400? at 20% per year, how long will it take for $50,000 to n=3 years 8/13 RES LO2 Exercises EGN 3203 engineering economics Simple and Compound Interest 11. If a company sets aside $1,000,000 now into a contingency fund, how much will the company have in 2 years, if it does not use any of the money and the account grows at a rate of 10% per year? F 1,100,000 F2 $1,210,000 12. Iselt Welding has extra funds to invest for future capital expansion. If the selected investment pays simple interest, what interest rate would be required for the amount to grow from $60,000 to $90,000 in 5 years? (10% per year) 13. To finance a new product line, a company that makes high-temperature ball bearings borrowed $1.8 million at 10%% per year interest. If the company repaid the loan in a sum amount after 2 years, what was (a ) the amount of the payment and ( b ) the lump amount of interest? (a) $2,178,000 (b) $378,000 14. Because market interest rates were near all-time lows at 4% per year, a hand tool company decided to call (i.e., pay off ) the high-interest bonds that it issued 3 years ago. 7/13 LO2 Exercises EGN 3203 enineering economics Equivalence KAt an interest rate of 15S per year, an investment of $100,000 one year ago is equivalent to how mach now? S115,000 9 During a recession, the price of goods and services goes down because of low demand A company that makes Ethenet adapters is planning to expand its production facility ata cod of SL000,000 one year from now. However, a contractor who needs work has offered to de the job for $790,000 if the company will do the expansion now instead of 1 year from sow. If the interest rate is 15% per year, how much of a discount is the company getting $79.565 10 As a principal in the consulting fi m whee you have worked for 20 years, you have accumulated S000 shares of company stock. One vear ago, each share of stock was worth 540 The company has offered to buy hack your shares for $225.000 Al Wha tert rate would the fi ‘s offer be equivalent to the worth of the stock lasl year 12.5% perr /13 EGN 3203 engineering economics LO2 Exercises Green algae, Chlamydomonas reinhardtii, can produce hydrogen when temporarily deprived of sulfur for up to 2 days at a time. A small company needs to purchase equipment costing $3.4 million to commercialize the process. If the company wants to earn a rate of return of 10% per year and recover its investment in 8 years, what must be the net value of the hydrogen produced each year? P = $3.4 million: A = 2: i= 10%: n = 8 LO2 Exercises EGN 3203 engineering economics 4. A new engineering graduate who started a consulting business borrowed money for I year to furnish the office. The amount of the loan was $23,800, and it had an interest rate of 10% per year. However, because the new graduate had not built up a credit history, the bank made him buy loan-default insurance that cost 5% of the loan amount. In addition, the bank charged a loan setup fee of $300. What was the effective interest rate the engineer paid for the loan? 16.3% Terms and Symbols 5. The symbol P represents an amount of money at a time designated following symbols also represent a present amount of money and require similar calculations. Explain what each symbol stands for: PW, PV, NPV, DCF, and CC. as present. The present worth: =present value; =net presenr value =discounted cash flow =capitalized cost PW PV NPV DCF CC 6. Identify the four engineering economy symbols and their values from the following problem statement. Use a question mark with the symbol whose value is to be determined. Thompson Mechanical Products is planning to set aside $150,000 now for possibly replacing its large synchronous refiner motors whenever it becomes necessary. If the replacement is not needed for 7 years, how much will the company have in its investment set-aside account, provided it achieves a rate of return of 119% per year? P $150,000: F- : i # 1/%; n = 7 7. Identify the four engineering economy symbols and their values from the following problem statement. Use a question mark with the symbol whose value is to be determined. 4/13 EGN 3203 engineering economics LO2 Exercises Interest Rate and Rate of Return 1. RKI Instruments borrowed $3,500,000 from a private equity firm for expansion of its manufacturing facility for making carbon monoxide monitors/ controllers. The company repaid the loan after 1 year with the interest rate on the loan? single payment of $3,885,000. What was a 11% per year Emerson Processing borrowed $900,000 for installing energy-efficient lighting and safety equipment in its La Grange manufacturing facility. The terms of the loan were such that the company could pay interest only at the end of each year for up to 5 years, after which the company would have to pay the entire amount due. If the interest rate on the loan was 12% per year and the company paid only the interest for 4 years, determine the following: a. The amount of each of the four interest payments b. The amount of the fi nal payment at the end of year 5 2. a) $108,000 b) $1.008,000 3. Which of the following 1-year investments has the highest rate of return? a. $12,500 that yields $1125 in interest, b. $56,000 that yields $6160 in interest, c. $95,000 that yields $7600 in interest.
7. (4 pts)(cfin,7-6) Your broker offers to sell you shares of Wingler
mcom/ g umt strt fme atod 41 sOs Seaech Q wiO Help Supgeted Sites @Web Sce Gallery term Exam Spring 2019 (Student Settings) Time Taken:1:1656 Asad Arfat Gul: Attempt 2 ceao eacn Statement careruny, naicate wnener tne statement is true or rarse oy filling in the circle next to either True or False Question 21 (1 point) When banks impose restrictions on a borrower that increases the chance of timely repayment, it is known as loan covenants. True False Saved Question 22 (1 point) A common definition of a small business is one with fewer than 100 employees O True False Saved Question 23 (1 point) The entrepreneur’s area of opportunity is also known as the “Sweet Spot True OFalse Question 24 (1 point) Obtaining cash by selling accounts receivable to another firm is known as an asset- based loan. SAMSUNG Backapace 6 5 OO B) Loan Covenants C) A Balloon Payment D) Crowdfunding Question 43 (1 point) Saved All would give an entrepreneur a competitive edge EXCEPT: A) Innovation B) Customer Focus C) Quantity Performance D) Integrity and Responsibility SAMSUNG MENU 3OURCE AUTO F5 F9 % 5 6 7 8 R K
The post Question: Investment In Capital Equipment (in € Thousand) N Useful Life Of The Equipment (in Years) 2.300 5 Residual Value Of The Equipment At The End Of Year 5 (in Thousand) Investment In Raw, Auxiliary And Operating Materials (in Thousand) Estimated Sales Volume In Year 1 (in € Thousand) Estimated Sales Volume In Years 2 To 5 (in Thousand) Sales Price Per … appeared first on uniessay writers.